Purchasing a home comes with many expenses. Whether you live in a healthy housing market or home prices are continuing to drop in your area, you already know you will have to factor in the cost of your mortgage when considering which home to buy. Using a Home Affordability Calculator can help you get started when calculating a mortgage. But there are additional factors you need to consider when determining what you can actually afford, as well.
In addition to your mortgage and other monthly expenses, many people overlook additional guaranteed or potential costs associated with owning a home. Be sure to consider these 10 hidden home expenses.
You will need to factor in the cost of taxes when considering whether you can afford a home. You might be able to afford to pay $2,000 per month if you are renting. But when you purchase a home you will also have to factor in property taxes when you are considering how much you can afford. Taxes will vary depending on where you live, so using a Property Tax Calculator can help you get a rough idea of what you might pay. Your real estate agent can help calculate what you will pay for your home and taxes each month.